1. © 2013 Cengage Learning. All rights reserved. CHAPTER 9 GLOBAL2  PENG AP Images/Andre Penner

2. © 2013 Cengage Learning. All rights reserved. CHAPTER 9 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1.Define entrepreneurship, entrepreneurs, and entrepreneurial firms. 2.Identify the institutions and resources that affect entrepreneurship. 3.Identify three characteristics of a growing entrepreneurial firm. 4.Describe how international strategies for entering foreign markets are different from those for staying in domestic markets. 5.Articulate what you should do to strengthen your entrepreneurial ability on an international level.

3. © 2013 Cengage Learning. All rights reserved. LO1: ENTREPRENEURSHIP Terms to Know  Entrepreneurship  Entrepreneurs  International entrepreneurship

4. © 2013 Cengage Learning. All rights reserved. LO2: INSTITUTIONS, RESOURCES, AND ENTREPRENEURSHIP

5. © 2013 Cengage Learning. All rights reserved. LO2: FORMAL INSTITUTIONS AND ENTREPRENEURSHIP Whether entrepreneurship is facilitated or retarded significantly depends on formal institutions governing how entrepreneurs start up new firms. © iStockphoto.com/Vikram Raghuvanshi Photography

6. © 2013 Cengage Learning. All rights reserved. LO2: INFORMAL INSTITUTIONS AND ENTREPRENEURSHIP Individualistic, low uncertainty- avoidance societies tend to foster more entrepreneurs than collectivistic, high uncertainty-avoidance societies.

7. © 2013 Cengage Learning. All rights reserved. LO2: RESOURCES AND ENTREPRENEURSHIP Entrepreneurial resources must be…  Valuable  Rare  Inimitable  Organized © iStockphoto.com/photovideostock

8. © 2013 Cengage Learning. All rights reserved. LO3: CHARACTERISTICS OF A GROWING ENTREPRENEURIAL FIRM  Growth  Innovation  Financing  Internationalization

9. © 2013 Cengage Learning. All rights reserved. LO3: FINANCING THE ENTREPRENEURIAL FIRM

10. © 2013 Cengage Learning. All rights reserved. LO3: FINANCING THE ENTREPRENEURIAL FIRM

11. © 2013 Cengage Learning. All rights reserved. LO4: INTERNATIONALIZING THE ENTREPRENEURIAL FIRM MYTH: Only large MNEs do business abroad; SMEs operate domestically Born global firms: start-ups that do international business from inception

12. © 2013 Cengage Learning. All rights reserved. LO4: ENTERING FOREIGN MARKETS

13. © 2013 Cengage Learning. All rights reserved. LO4: AN EXPORT-IMPORT TRANSACTION

14. © 2013 Cengage Learning. All rights reserved. LO4: STAGE MODEL  Suggests that required level of complexity and resources increase as firm moves from direct export to licensing to FDI.  But, there are many counter-examples (born global firms).  The key to rapid internationalization–the international experience of the entrepreneurs.

15. © 2013 Cengage Learning. All rights reserved. LO4: STAYING IN DOMESTIC MARKETS

16. © 2013 Cengage Learning. All rights reserved. LO5: ENCOURAGING ENTREPRENEURISHIP ON AN INTERNATIONAL LEVEL

17. © 2013 Cengage Learning. All rights reserved. DEBATE: MICROFINANCE: MACRO SUCCESS OR GLOBAL MESS?  Recent IPOs of microfinance institutions have sparked controversy over the ethics of shareholders profiting from the poor.  During the 2008-2009 crisis, default rates skyrocketed, leaving many borrowers burdened with crippling amounts of debt.  Muhammad Yunus pioneered microfinance, a system for providing small loans to poor people in places like rural India (primarily to women or village collectives), which can be used to make small capital investments (cows, cell phones) for entrepreneurial activities. AP Images/Pavel Rahman